Capital Futures targets Chinese market via pact

By Crystal Hsu / Staff reporter

Capital Futures Corp (群益期貨) aims to grow its income by 24 percent this year from last year by expanding into securities trading at home and deepening its overseas operations by working with partners, senior executives said on Thursday.

The futures brokerage has approved plans to raise its capital of NT$1 billion (US$32.8 million) by 20 percent, or NT$200 million, to fund expansions abroad, particularly in Greater China, president Alex Chia (賈中道) said at a press conference.

The company plans to channel part of the proceeds to its Hong Kong subsidiary, allowing it to deepen alliances with foreign partners and tap into the Chinese market by setting up a futures house under the Closer Economic Partnership Arrangement (CEPA) between Hong Kong and China, Chia said.

CEPA allows futures firms in Hong Kong to own up to a 49 percent stake in a joint venture in China.

Capital Securities, which has had an office in Shanghai for more than a decade, intends to open a branch in Shenzhen, but has to wait until after the cross-strait service trade pact clears the legislature.

“Capital Futures is qualified to enter China regardless of how the cross-strait service trade pact pans out,” Chia said, adding that the company is in talks with potential Chinese partners.